Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — H1 FY2019 Earnings Presentation
29 slides from Charter Hall Long Wale Reit's earnings presentation, Feb 11, 2019
Slide 1: FY19 Half Year Results
For personal use only 11 February 2019 Charter Hall Long WALE REIT FY19 Half Year Results 6 months to 31 December 2018 Optima Centre, Perth, WA
Slide 2: Agenda
Charter Hall Long WALE REIT I 2019 Half Year Results 2019 half year results Agenda For personal use only 1. FY19 half year highlights 3 2. Financial performance 6 3. Operational updates & portfolio overview 11 4. FY19 earnings guidance 19 5. Additional information 21 Avi Anger Kerri Leech Ben Ellis
Slide 3: 1. FY19 half year highlights
Charter Hall Long WALE REIT I 2019 Half Year Results For personal use only 1. FY19 half year highlights 3 Optima Centre, Perth, WA
Slide 4: FY19 half year highlights
Charter Hall Long WALE REIT I 2019 Half Year Results Key highlights FY19 half year highlights1 For personal use only Financial performance Portfolio performance Capital management Operating EPS of 12.6 year WALE2 31.5% gearing 12.9 cents up 16.7% from 10.8 years at within target range of 25% – 35%3
Slide 5: FY19 half year results snapshot
Charter Hall Long WALE REIT I 2019 Half Year Results Financial performance FY19 half year results snapshot For personal use only Completed $665.6 million1 of strategic and portfolio enhancing property transactions Extended the portfolio WALE… increased portfolio diversification… 1.0 Retail Industria
Slide 6: 2. Financial performance
Charter Hall Long WALE REIT I 2019 Half Year Results For personal use only 2. Financial performance 6 40 Tank St, Brisbane, QLD
Slide 7: FY19 half year results snapshot
Charter Hall Long WALE REIT I 2019 Half Year Results Financial performance FY19 half year results snapshot For personal use only Key metrics 1H FY19 Statutory profit $26.3m Operating earnings $31.1m Operating earnings per security 12.9 cents Distributions per security 12.9 cents 31 December 2018 30
Slide 8: Financial performance
Charter Hall Long WALE REIT I 2019 Half Year Results Financial performance Financial performance For personal use only A$m 1H FY19 1H FY18 % change • 12.1% NPI growth attributed to: Net property income 48.1 42.9 12.1% ‒ Like-for-like growth of 2.8% Interest income 0.1 0.1 - ‒ Net acquisition activit
Slide 9: Balance sheet
Charter Hall Long WALE REIT I 2019 Half Year Results Financial performance Balance sheet For personal use only A$m 31 Dec 2018 30 Jun 2018 • $271.1 million (30%) increase in investment properties Cash 5.5 5.5 ‒ Net acquisitions of $255.7 million Investment properties 1,165.4 894.3 ‒ Gross property r
Slide 10: Debt & hedging summary
Charter Hall Long WALE REIT I 2019 Half Year Results Financial performance Debt & hedging summary For personal use only A$m Look through gearing maturity profile (A$m) Debt summary Limit Drawn Maturity 500 Balance sheet debt Syndicated debt facility 480.0 445.2 Feb-22 400 Offshore bilateral debt fac
Slide 11: 3. Operational updates & portfolio overview
Charter Hall Long WALE REIT I 2019 Half Year Results For personal use only 3. Operational updates & portfolio overview 11 Inghams, Monarto, SA
Slide 12: Portfolio update
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Portfolio update For personal use only Portfolio and WALE improvements through strategic transaction activity Acquisitions Disposals • $491.9 million of property acquisitions diversified across real esta
Slide 13: Inghams portfolio lease extensions
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Portfolio update For personal use only Successful lease extensions increasing Inghams portfolio WALE to 24.6 years Portfolio acquisition highlights • Portfolio of 27 agri-logistics properties located acr
Slide 14: Portfolio snapshot
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Portfolio snapshot For personal use only Dec 2018 Jun 2018 Portfolio by sector1 Number of properties 113 81 Retail 25% Property valuation (A$m) 1,874.9 1,525.2 Industrial Weighted Average Capitalisation
Slide 15: Tenant diversification
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Tenant diversification For personal use only • CLW’s portfolio comprises a strong and stable tenant base with 26 high quality customers across various industries and business sectors Major tenants1 Woolw
Slide 16: Industry diversification
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Industry diversification1 For personal use only • Portfolio underpinned by long leases to tenants across diverse business industries • >95% of the portfolio leased to either ASX listed, government / gove
Slide 17: Lease expiry profile
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Lease expiry profile For personal use only Long dated portfolio WALE of 12.6 years • Portfolio WALE increased 16.7% to 12.6 years from 10.8 years as at 30 June 2018 WALE of 12.6 years 26.5% 14.0% 11.5% 9
Slide 18: Geographic diversification
Charter Hall Long WALE REIT I 2019 Half Year Results Operational highlights & portfolio overview Geographic diversification For personal use only Highly diversified by geography and real estate sector1 • 113 assets comprising office, industrial, agri-logistics and retail properties located in six Au
Slide 19: 4. FY19 earnings guidance
Charter Hall Long WALE REIT I 2019 Half Year Results For personal use only 4. FY19 earnings guidance 19 Woolworths Distribution Centre, South Dandenong, VIC
Slide 20: FY19 earnings guidance
Charter Hall Long WALE REIT I 2019 Half Year Results FY19 earnings guidance FY19 earnings guidance For personal use only • The REIT confirms that barring any unforeseen events and no material change in current market conditions, CLW’s guidance for FY19 Operating EPS remains unchanged from the guidan
Slide 21: Additional information
Charter Hall Long WALE REIT I 2019 Half Year Results For personal use only Portfolio revaluations 22 Property investment portfolio 23 Glossary 27 Contact information 28 Additional information 21 Hyde Park Hotel, West Perth, WA
Slide 22: Portfolio revaluations
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Portfolio revaluations For personal use only 1H FY19 valuation summary • 1H FY9 property revaluations resulted in a total gross uplift of $30.7 million • The portfolio WACR as at 31 December 2018, including all transactions,
Slide 23: Industrial portfolio
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Property investment portfolio For personal use only Industrial portfolio – $710.8 million Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR5 Asset State REIT interest (A$m) (%) (years) (A$m) (sqm) (%) Australia Post, Kingsgrov
Slide 24: Office portfolio
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Property investment portfolio For personal use only Office portfolio – $495.5 million Valuation1 Cap rate2 WALE3 Occupancy3 NLA4 WARR5 Asset State REIT interest (A$m) (A$m) (years) (%) (sqm) (%) Westpac Building, Kogarah NSW
Slide 25: Retail portfolio
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Property investment portfolio For personal use only Retail portfolio – $461.5 million Asset LWIP portfolio1 Other retail Total Number of assets 58 2 60 Property valuation2 (A$m) 409.5 52.0 461.5 WACR3 (%) 5.8% 5.9% 5.8% WALE
Slide 26: Agri-logistics portfolio
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Property investment portfolio For personal use only Agri-logistics portfolio – $207.0 million Valuation1 Cap rate2 WALE3 Occupancy3 GLA4 WARR3 Asset State REIT interest (A$m) (%) (years) (A$m) (sqm) (%) Ingham’s portfolio (2
Slide 27: Glossary
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Glossary For personal use only ASX Australian Stock Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash Cap rate Capit
Slide 28: Contact information
Charter Hall Long WALE REIT I 2019 Half Year Results Additional information Contact information For personal use only Avi Anger Kerri Leech Ben Ellis Philip Cheetham Fund Manager Head of Long WALE REIT Finance Deputy Fund Manager Head of Listed Investor Relations Charter Hall Long WALE REIT Charter
Slide 29: For personal use only
Charter Hall Long WALE REIT I 2019 Half Year Results Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 14, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 400
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